Bangladesh’s foreign debt has surged to a record high of $112.16 billion as of the end of June, driven by a significant inflow of foreign loans. The country received over $5 billion in loans in June alone, marking a new milestone in its history of foreign borrowing.
According to data from the Bangladesh Bank, approximately $81 billion of the current debt has been accumulated over the last 15 and a half years, during the tenure of the Awami League government. The government has aggressively sought loans from international organizations such as the IMF, World Bank, ADB, JICA, and AIIB. Simultaneously, private entrepreneurs have also turned to foreign sources for low-interest loans.
For the past few years, the country has faced a severe dollar crisis due to higher foreign currency expenditure compared to income. Despite various measures taken by the previous government, including import control and increased foreign loans, the decline in foreign exchange reserves could not be stopped. However, since the interim government took charge, the reserves have stabilized. Increased remittances and a continued flow of foreign loans have also brought stability to the exchange rate.
The central bank’s latest data reveals that the total foreign debt, covering both public and private sectors, stood at $112.16 billion at the end of the June fiscal year. This amount is equivalent to approximately 13.68 trillion taka (at an exchange rate of 122 taka per dollar).
The data also shows a rapid increase in debt over a short period. The foreign debt stood at $104.8 billion in March, meaning it grew by $7.36 billion in just three months. Over a six-month period, the debt increased by $8.43 billion, up from $103.73 billion in December.
The country’s foreign debt has nearly tripled in the last decade, from $41.17 billion at the end of the 2015-16 fiscal year. In December 2023, Bangladesh’s foreign debt crossed the $100 billion milestone for the first time.
Based on UNFPA’s population estimate of 175.7 million for 2025, Bangladesh’s per capita foreign debt now stands at $638, which is about 77,433 taka. A decade ago, this figure was just over $257.
The central bank’s data indicates that 82% of the foreign debt belongs to the government sector, while the remaining 18% is from the private sector. By the end of June 2025, the government’s foreign debt had reached $92.37 billion, a significant increase from $84.92 billion in March. This represents an 8.77% rise in government debt in three months. In contrast, the private sector’s foreign debt was $10.97 billion at the end of June, showing a slight increase from $10.98 billion in March.
